There has been a surge in covid cases in neighbouring countries, leading to increased concern about masks, vaccines, and covid-specific insurance plans. However, covid-specific plans address this perception. The fact that most households have had at least one member affected by covid, makes it a more likely event. Furthermore, the risk of covid is imminent, as seen in the previous waves of the virus when cases multiplied quickly. For these reasons, people are more interested in purchasing covid-specific insurance plans as a way to hedge against the risk.
Read more : Corona Kavach Insurance – A Covid-specific plan
In the past three years, insurers have launched several types of covid-specific insurance plans in response to the urgent need for coverage.
On the individual side, two standardized plans called ‘Corona Kavach’ and ‘Corona Rakshak’ were introduced by the regulator. ‘Corona Kavach’ is an indemnity plan that reimburses expenses related to hospitalization and at-home care, while ‘Corona Rakshak’ is a fixed benefit plan that pays a lump sum if hospitalization lasts for a certain number of days. Insurers were hesitant to offer ‘Corona Rakshak’ but saw a strong demand for ‘Corona Kavach’.
On the group side, employers provided covid-specific death coverage to their employees, in addition to their existing group term life insurance. Some companies also offered a covid-specific top-up plan, which employees could use after exhausting their base group health plan coverage.